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If you are struggling to repay your debts, you may be considering either debt review or debt consolidation – they are not the same thing. Scorpion explains what these two terms mean so you can make an informed decision that is best for your specific debt situation.
Sometimes also called debt counselling, this is when a professional debt counsellor assesses all your debts and works out a structured debt repayment plan for you. The debt counsellor negotiates new repayment terms with your credit providers so you pay less towards your debts for a longer period of time, making it more affordable on your monthly commitments. Note that you can approach your credit providers yourself to find out about negotiating repayment.
This is when you are struggling to stay on top of all your different debt repayments, so you take out a debt consolidation loan yourself to pay off all your various debts, meaning that you will now only have one repayment to make to the credit provider of the loan. So multiple loans, agreements and interest rates become a single monthly payment, with one interest rate and a single repayment term.
Scorpion can help you find out if your debt has prescribed, deal with judgments against your name and help you understand your rights in terms of the law. Need help? Click here.
You may also be interested in:
5 reasons to check your credit report
What is debt review?
Beware of claims on prescribed debt
* This is not financial advice, it is basic legal advice only and should not be relied on solely. Information is correct at the time of publication.
Date added: 23 June 2023
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